Ready to upgrade to endless hot water, but wondering what you’ll pay for a tankless water heater? From the price of the unit itself to installation, extra materials, and long-term savings, costs can vary widely. Whether you’re a homeowner planning a switch, or just comparing your options, this complete guide breaks down exactly how much a tankless water heater costs—including top models, installation examples, money-saving tips, and real product reviews.
Quick Answer: Average Tankless Water Heater Costs
- Gas Tankless Water Heaters: $700–$2,500+ for unit alone; most popular whole-house models are $1,000–$1,500.
- Electric Tankless Water Heaters: $350–$900+ for unit alone; best whole-house options are $400–$700.
- Installation (Pro Labor): $900–$2,500+ depending on plumbing, venting, and electrical upgrades.
- Total Typical Installed Cost: $1,500–$4,500+ (all parts and labor included).
Pro tip: Always budget for both the heater and installation. DIY is possible for some electric models, but gas installs should be left to pros.
Cost Breakdown: What Impacts Tankless Water Heater Pricing?
- Fuel Type: Gas/propane models cost more up front and to install than electric, but usually deliver more hot water per minute.
- Size & Flow Rate: Larger GPM (gallons per minute) units cost more but handle more simultaneous showers/appliances.
- Efficiency (UEF): Ultra-high efficiency or condensing models have a higher sticker price but save more energy each month.
- Brand & Features: Premium brands (Rinnai, Navien, Rheem) and extras like WiFi, recirculation, or digital controls bump up cost.
- Installation Complexity: Upgrading gas lines, electrical panels, or venting adds to labor cost.
- Location: Local labor rates and code requirements can affect your final bill.
Top-Rated Tankless Water Heaters by Price & Value
Rinnai V94iN Natural Gas Tankless Water Heater
- Price: ~$1,200 (unit only)
- 9.8 GPM max, Energy Star rated, 10-year heat exchanger warranty
- Ideal for families or homes with 2–4 bathrooms
Final Verdict: The most popular whole-house gas tankless—great balance of price and power.
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EcoSmart ECO 27 Electric Tankless Water Heater
- Price: ~$500 (unit only)
- 27 kW, 6.5 GPM max (warm climates), lifetime warranty for residential use
- Best for small homes, condos, or point-of-use installations
Final Verdict: Best value for money in electric tankless—easy to install and low maintenance.
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Navien NPE-240A2 Condensing Gas Tankless Water Heater
- Price: ~$1,700 (unit only)
- 11.2 GPM, ultra-high efficiency, built-in recirculation, 15-year warranty
- Perfect for large homes or luxury installations
Final Verdict: Top pick for high-demand homes with multiple baths and big tubs.
See details on Amazon
Buyer’s Guide: How to Get the Best Value
- Match GPM to Your Household: Oversizing wastes money; undersizing leads to cold showers. Most families need 7–9 GPM for two to three baths.
- Consider Installation Upgrades: Older homes may need new venting, gas lines, or electrical circuits—budget for this if needed.
- Look for Rebates & Tax Credits: Many states and utilities offer incentives for high-efficiency tankless water heaters—check before you buy.
- Choose Reputable Brands: Saving a few hundred dollars up front is rarely worth the risk of leaks, poor support, or early breakdowns.
- Shop During Sales: Off-season or holiday sales can drop prices by 10–25%.
- DIY vs. Pro Install: Electric models may be a DIY job if you’re handy, but gas and larger electrics should always be pro-installed for safety and warranty.
Real-World Example: Full Cost for a Family Home
- Unit: Rinnai V94iN Gas Tankless ($1,200)
- Installation Labor: $1,000
- Venting Materials: $300
- Total Installed Cost: $2,500
- Estimated Annual Savings vs. Old Tank: $80–$150/year (energy bills)
Cost Comparison Table: Tankless Water Heaters
| Model | Type | Max GPM | Unit Cost | Installed Cost | Best For | Price Link |
|---|---|---|---|---|---|---|
| Rinnai V94iN | Gas | 9.8 | $1,200 | $2,200–$3,000 | Families, whole house | View |
| EcoSmart ECO 27 | Electric | 6.5 | $500 | $1,200–$1,800 | Small homes, apartments | View |
| Navien NPE-240A2 | Gas/Condensing | 11.2 | $1,700 | $2,800–$4,500 | Large homes, high demand | View |
FAQ: Tankless Water Heater Costs
- Why are tankless heaters more expensive than tanks?
They use advanced technology, high-quality heat exchangers, and need pro installation—but last longer and cost less to run. - Will a tankless heater save me money?
Yes, most families save $80–$200+ a year on energy, plus fewer replacements over time. - Can I get by with a small, cheap model?
Only if you have very low hot water needs. Undersizing leads to cold water and unhappy mornings! - Is installation always expensive?
Simple swaps in newer homes are often less, while older homes needing upgrades may cost more. - How long do they last?
Most tankless water heaters run for 15–20+ years with proper maintenance—almost twice as long as standard tanks.
Conclusion
Tankless water heaters are an investment in comfort, savings, and peace of mind. While the upfront cost is higher than traditional tanks, the benefits quickly add up—endless hot water, lower bills, and long life. Use the info and examples above to plan your upgrade, avoid common pitfalls, and choose a model that keeps your family happy for years. Need more help estimating your project or comparing options? Just ask below!